#TrumpAgreesToClarityEthicsClause Ethical Threshold Crossed in Clarity Act ✨

Following months of negotiations, President Donald Trump approved the ethics regulation for the Clarity Act. This step means overcoming what was seen as the last major hurdle for the federal framework on the crypto side.

🔹 The new ethics text aims to prohibit federal officials from issuing crypto assets.
🔹 Scope includes the president, vice president, members of Congress, and high-ranking federal officials.
🔹 The Department of Justice will be responsible for implementation, not state attorneys general.
🔹 Memecoins and revenues linked to World Liberty Financial are at the center of the debate.
🔹 The regulation was accelerated after a meeting on July 16th with Lummis, Moreno, and White House crypto advisor Witt.

The White House describes the approved text as the most comprehensive ethics regulation in its history. The Democratic side, however, states that it has not yet seen the details of the text and that the implementation mechanism needs to be clarified. The debate over neutrality continues, particularly given the Department of Justice's close ties to the president.

The Clarity Act stands out as the first comprehensive federal framework that introduces power sharing between the SEC and CFTC for digital assets. It seemed unlikely that the law would enter the Senate calendar without resolving the ethics clause. The voting window for the Senate is narrowing before the early August recess.

Following the news, Bitcoin, Ethereum, and XRP saw a recovery in the market. In the prediction market, the probability of the law becoming law in 2026 rose from 32% to 43%.

The process is currently in the text publication phase. After the Senate vote, it requires House of Representatives approval and then the president's signature. Before the text is published, it is unclear whether the ethics clause will cover family members, existing assets, or new token launches.